IIA IIA-CIA-Part3 Quiz 66 Topic 2 Questions 326-330

Question: 1

A bicycle manufacturer incurs a combination of fixed and variable costs with the production of each bicycle Which of the following statements true recording these costs?

AIf the number of bicycles produced is increased by 15 percent, the variable cost per unit will increase proportionally

BThe fixed cost per unit will vary directly based on the number of bicycles produced during the
production cycle

CThe total variable cost will vary proportionally and inversely with the number of bicycles produced during a production run

DIf the number of bicycles produced is increased by 30 percent the fixed cost per unit will decline

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Question: 2

A retail organization mistakenly did not include S10.000 of inventory in the physical count at the end of the year. What was the impact to the organization's financial statements?

ACost of sales and net income are understated

BCost of sales and net income are overstated

CCost of sales is understated and net income is overstated.

DCost of sales is overstated and net income is understated.

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Question: 3

Which of the following actions would senior management need to consider as pan of new IT guidelines regarding the organization's cybersecurity policies?

AAssigning new roles and responsibilities for senior IT management.

BGrowing use of bring your own devices tor organizational matters

CExpansion of operations into new markets with united IT access

DHiring new personnel within the IT department tor security purposes

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Question: 4

In the current year, a merchandising organization had an inventory turnover ratio of 3.0, which was less than the industry average of 6.5. Which of the following offers the most likely explanation for this difference?

AThe organization has understated the amount of inventory in its financial statements

BThe organization has overstated the cost of purchases in its financial statements.

CThe organization is holding obsolete or damaged items in its inventory

DThe organization experienced an unexpectedly large increase in sales shortly before year end.

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Question: 5

Which of the following principles is shared by both hierarchical and open organizational structures?

1) A superior can delegate the authority to make decisions but cannot delegate the ultimate responsibility for the results of those decisions

2) A supervisor's span of control should not exceed seven subordinates

3) Responsibility should be accompanied by adequate authority

4) Employees at all levels should be empowered to make decisions.

A1 and 3 only.

B1 and 4 only.

C2 and 3 only

D3 and 4 only.

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IIA IIA-CIA-Part3 Quiz:66 Topic:2 Questions:326-330